EnerSys (ENS) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales increased 1% year-over-year to $919 million, driven by strong price/mix and FX gains offsetting lower volumes, especially in Motive Power.

• Adjusted diluted EPS ex 45X was $1.84, up 50% year-over-year, marking a record Q3 performance; diluted EPS was $2.40, down 17% year-over-year.

• Free cash flow was strong at $171 million, with $94 million returned to shareholders via buybacks and dividends.

• Strategic initiatives included cost management, plant realignment, and new product development, positioning for future growth.

• The acquisition of Bren-Tronics Defense LLC for $206.4 million expanded the Specialty segment's defense and portable power offerings.

Financial highlights

• Net sales were $919 million, up 1% year-over-year; price/mix +3%, FX +2%, organic volumes -4%.

• Adjusted gross profit was $278 million, down year-over-year, but up 8% ex 45X; gross margin ex 45X improved 170 bps to 26.4%.

• Adjusted operating earnings were $142 million, margin 15.5%; adjusted EBITDA was $160 million, down year-over-year; ex 45X, up 30%.

• Net earnings for the quarter were $90.4 million, down from $114.8 million in the prior year.

• Free cash flow conversion was 190% in Q3, up from 46% in Q3'25.

Outlook and guidance

• Q4 net sales expected at $960 million–$1 billion; adjusted diluted EPS $2.95–$3.05 (incl. $37–$42 million 45X), ex 45X: $1.91–$2.01, up 10% year-over-year at midpoint.

• Full-year adjusted operating earnings growth ex 45X to outpace revenue growth, driven by OpEx savings and price mix.

• CapEx for FY26 expected at ~$80 million.

• The restructuring plan is expected to deliver $80 million in annualized savings, with $30–$35 million realized in fiscal 2026.